Q: Hi Peter & 5i Team,
I know that you like stocks with momentum. In the Industrials sector, our major holdings are WSP, which has been held for a long time, and STN, held for less time, and I'm somewhat disappointed in its performance. Please comment on these three possible scenarios:
(1) Wait until May 13 when BDT and STN post their earnings. BDT is presently displaying excellent momentum. If prudent, sell some or all of STN to deploy into BDT.
(2) Realizing that WSP is currently under pressure and trading at a reasonable price, sell some or all of STN to deploy into WSP.
(3) Perhaps 5i may have a better idea.
Thanks as always for your valuable insight.
I know that you like stocks with momentum. In the Industrials sector, our major holdings are WSP, which has been held for a long time, and STN, held for less time, and I'm somewhat disappointed in its performance. Please comment on these three possible scenarios:
(1) Wait until May 13 when BDT and STN post their earnings. BDT is presently displaying excellent momentum. If prudent, sell some or all of STN to deploy into BDT.
(2) Realizing that WSP is currently under pressure and trading at a reasonable price, sell some or all of STN to deploy into WSP.
(3) Perhaps 5i may have a better idea.
Thanks as always for your valuable insight.
5i Research Answer:
We would be fine to wait for earnings and make a decision with a bit more information. We think STN remains fine, has good growth and a reasonable valuation and has been a long-term value creator. So, we don't view it as an 'obvious' sell but owning two of the three, vs all three, makes sense and would maintain exposure to the space overall.